The price of corn saw the largest one-day price increase in more than three months on Monday. The Associated Press reports the gain comes as dry weather is forecast for the Midwest.
December corn rose 22 cents, or 4.7 percent, to $4.85 a bushel. Corn prices have slumped this year when supplies looked too plentiful. Producers are expecting a record crop of 13.8 billion bushels of this year, an increase of 28 percent from last year's crop.
Last year, corn reached $8.49, the highest ever, after the drought damaged yields. But this year, corn has been one of the biggest decliners among agriculture products, dropping 31 percent since the start of the year. Corn futures on the Chicago Board of Trade tumbled to $4.7425 a bushel on Aug. 16, showing the biggest drop among 24 commodities tracked by the Standard & Poor’s GSCI Index.
Bloomberg News reports that estimates from the U.S. Department of Agriculture show the crop will be down 2.7 percent from what it expected in May, after rain delayed planting and low temperatures slowed growth.
Wheat and soybeans also rose, according to the Associated Press. December wheat gained 10 cents, or 1.6 percent, to $6.54 a bushel. Soybeans rose 44 cents, or 3.5 percent, to $13.03 a bushel.